If agreed, the move would represent a shift in EU policy towards promoting democracy, bringing the Union closer to Washington's approach.

It would also mark a significant ramping up of pressure on the authorities in Minsk, which has increasingly come under the spotlight since the democratic developments in Georgia and Ukraine.

According to a paper discussed by member states' diplomats this week, the EU should consider supporting cash-strapped opposition parties in the run-up to presidential elections, expected in autumn next year. The EU is preparing a review of its policy towards Belarus, as many fear President Alexander Lukashenko will attempt to rig the vote.

The document, put forward by the Council of Ministers' policy unit, says that the "Lukashenko regime is becoming increasingly repressive", pointing to the continued harassment of opposition and civil society activists.

It asks whether "direct/indirect opposition support" should be considered "as part of civil society support".

Other measures under consideration include the expansion of a visa ban on Belarussian officials and the freezing of assets.

While such moves have become a standard EU response to human rights violations, until now the Union has shied away from US-style direct financial support for opposition parties.

Measures agreed last year under the 'European initiative for democracy and human rights' include funding for civil society projects but no direct or indirect funding for opposition parties.

Critics say the policy has had little impact on the regime.

And according to democracy campaigners, current EU rules make it difficult for pro-democracy non-governmental organisations to avail themselves of funding.

Olga Stuzhinskaya, the Brussels representative of a coalition of Belarussian opposition parties and NGOs, explained that NGOs "have to have a partnership with a Western European NGO" to qualify for grants, and all the papers are in English.

"The situation for opposition parties is very, very bad," she said, "in the last couple of years all the donors have moved out and the NGOs and political parties have been left on their own, many have closed."

"Everyone is talking about great support for the opposition for civil society and isolating the regime but nothing happens. The repression increases."

Plans to set up a radio station broadcasting news to Belarus from Lithuania or Poland have so far come to nothing.

Last autumn Washington approved a Belarus Democracy Act which authorises support for the opposition and independent media.

But since then many leading figures in the Belarussian opposition have been charged with criminal activities, debarring them from running in the elections.

In a sign that tensions are rising, Lukashenko used a recent interview to issue a stark warning against fomenting any 'rainbow revolution' inside the country.

"There will be no revolution here as only hell-raisers would participate in it," he told Russian television, adding: "There will be a special treatment for hell-raisers."

But some member states are likely to be cautious about changing current policy, which offers the Belarussian government increased trade and aid in exchange for democratic reforms.

Supporters of the current policy say that engagement with the regime must be kept up.